Smartphone giant Xiaomi is sharpening its focus on the mid-premium market in India and aims to double the share in the Rs 15,000-20,000 range this year along with a deeper push in the Rs 20,000-30,000 segment next year, Chief Business Officer Sandeep Arora told Moneycontrol in an interview.
The management also plans to ramp up the share of QLED TVs from under 10% to 35% of its own portfolio.
Backed by a 140 million-strong user base in India and a leadership that has endured key exits, the Chinese smartphone maker assured the morale of the business is high, and both Xiaomi and Poco – another brand owned by Xiaomi - will play stronger roles in the premium push.
The results of these efforts will start showing up in both volumes and Average Selling Price (ASP) growth after the new strategy kicks in, said Sandeep Arora, with much of the groundwork already done in retail execution, store presence and portfolio realignment.
“Both capability and portfolio are in place, and you should start seeing results, though of course there’s no silver bullet,” he added.
Edited excerpts:
Q: As Chief Business Officer, what are your top priorities for this year and next? A: My priority is to double our share in the Rs 15–20k price segment, and then in the Rs 20–30k segment next year. In TVs, we started the year with less than 10% contribution from QLEDs and aim to exit with 35%. All our metrics are about growing ASP and driving sustainable growth.
Q: How are you looking at the festive season? A: We are very excited about the festive season. The key priority is to move up ASP. We’ve had a very exciting launch of Redmi 15. Along with that, we want to make a strong claim in the 15–20k segment. Overall, our key objective is to premiumize and move up the ASP. I think we’ll start to see that both in this festive quarter, Q4, and next year.
Q: When do you expect volume to pick up for Xiaomi? IDC and Counterpoint still showed Q2 decline in shipments. A: Results will start to show both in volumes and ASP growth. It is about setting up infrastructure and capability, and a lot of that work has already happened, even if it may not be visible. We’ve strengthened retail execution, store presence, and portfolio in the right segments. Both capability and portfolio are in place, and you should start seeing results, though of course there’s no silver bullet.
Q: What is happening with Poco? Himanshu Tandon has left, and globally, there was talk of merging Poco back into Xiaomi. A: Poco as a business continues to operate. Himanshu was reporting to me. If there’s any announcement, we will let you know. For now, there is no announcement.
Q: From the numbers point of view, Poco seems to be doing well. A: Yes, Poco numbers are good. Our focus there also is to move up the value. With the launch of Poco X7 and X7 Pro at the beginning of the year, and now the F7, the focus is to strengthen our presence in these segments. We’ve seen very good traction there.
Q: With leadership changes—Himanshu, Muralikrishnan B, and other executives leaving—do you think morale in Xiaomi India is down? A: Morale is high. From leadership down, there is clarity on where we want to go. Of course, any journey has bumps, but we are headed in the right direction. Leadership transitions are natural in organizations. Xiaomi has a strong brand franchise and a 140 million monthly active user base, which gives us strength and conviction. You’ll see this play out more strongly with Poco and Xiaomi premium models next year.
Q: Are you responding to Apple and Samsung’s legal notice on your advertisements?
A: No comments on that.
Q: On the ecosystem products, Xiaomi plays in many categories—tablets, wearables, IoT. What is the strategy? Do you want to increase focus there? A: We are seeing growth ahead of the market and gaining share. Both Pad 7 and Pad 2 have been very successful launches. Our tablet portfolio is growing at 2x the market rate. Xiaomi has a very strong base of 130–140 million smartphone users in India, and we will leverage that base for our tablets and AIoT. You’ll see stronger plays in TVs, wearables, and TWS. Our focus is to get the right portfolio and slowly move up the price curve.
Q: How are your relations with mainline/offline retailers? A: Our focus is to grow business with our mainline partners. Their demand from us is to grow not just volume but also value. They appreciate the investments we are making in the channel—like more promoters, more display counters. It shows our commitment. Overall, it’s positive, though like in any relationship, there is always scope for improvement from both sides.
Q: Given premiumization, is retail becoming more crucial? Consumers want to see and feel the device before purchase, especially at higher price points. A: Absolutely. At higher price points, mainline retail contribution is high because consumers want touch, feel, service, and in-store setup. These services add huge value. As we move up the price ladder, we have to leverage this channel’s strengths. At the same time, online platforms are also improving with better content and video showcases, so both channels are important.
Q: Your comment on the GST cut on TVs? A: The GST cut is a game changer. Already, we are seeing movement towards larger screen sizes and new technologies—4K, QLED, OLED, Mini-LED. The GST cut will accelerate that migration. While overall TV volumes are flat, consumers are shifting to larger and better technologies.
Q: Tablets are also showing growth. What is driving demand? A: Tablets have evolved from productivity and education devices into entertainment devices. Sometimes the “third TV” in a house is actually a tablet, especially for teenagers consuming content. That’s why demand is rising. Even when tablets take over secondary TV use, demand for premium primary TVs also goes up.
Q: Which other categories might Xiaomi enter? Or will you focus on existing ones? A: Our focus is to build existing businesses, premiumize, and strengthen capabilities. Of course, like any business, we will evaluate the right time to enter new categories, but priority is to strengthen smartphones, TVs, wearables, and AIoT.
Q: Xiaomi has exclusive and flagship stores in China. Will you expand similar stores in India, like Samsung and Apple are doing? A: Exclusive stores are an important pillar for Xiaomi globally. In India, we have about 750–800 stores. Flagship experience stores exist in Indiranagar (Bengaluru) and at our office. They showcase the brand across categories. For now, our focus is on improving presence and experience across the retail chain, rather than following other brands.
Q: How do you see the overall market this year? Will it remain flat or pick up? A: I think you’ll see growth, especially when offers across price bands encourage consumers to jump to higher price points. Consumers aspire to own better devices, and festive offers accelerate that. The trend may not be as sharp as in TVs, but it will continue.
Q: Will there be clear distinction between Xiaomi and Poco products? Sometimes specs overlap. A: Yes, Xiaomi will be our flagship and premium brand, playing at Rs 40k–50,000 and above. Below that, both Redmi and Poco will play, with their own positioning, points of difference, channel focus, and consumer base. Given the scale of the Indian market, both brands have strong roles to play.
Q: Are you reducing focus on the entry-level segment below Rs 10,000? A: No, we will maintain our share in that segment. But as contribution from entry-level drops, our growth has to come from higher segments. This festive season, one of our primary goals is to grow share in the Rs 15–20k segment with Redmi Note 15 and the Note series.
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